Your Boss, Ty Jacob, Has Asked You to Analyze the Music

question 106

Multiple Choice

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's five forces model.Which of the following represents buyer power in the music industry?

• A)Established record labels like EMI, Sony, Universal.
• B)Walmart, Target, iTunes.
• C)Independent record labels.
• D)Game systems like Wii, social networks like Facebook.

---

Definitions:

Classical Theory

An economic theory that emphasizes free markets, free trade, and the idea that markets, if left to operate without interference, will naturally regulate themselves.

Interest Rate

The cost of borrowing money or the return on saved or invested money, expressed as a percentage of the principal.

Saving and Investment

The act of setting aside income for future use and allocating it to instruments expected to generate returns over time

Nominal-Wage Rigidity

The situation where nominal wages are slow to adjust to changing economic conditions, affecting employment and economic dynamics.